US-based Advent seeking investors for Suven-Cohance merger

economictimes.indiatimes.com:

Advent could rope in new investors into its planned combination of Suven Pharma and Cohance Life Sciences, as it looks to create a top three contract development and manufacturing organisation with a diversified shareholder base by combining the portfolio companies, according to sources in the know.

«A few investors have been sounded out. They are looking to induct new investors as part of the merger plan of Suven Pharma with Cohance. The idea is to have a diversified shareholder base in the merged entity and bring in investors who could add value to the business,» a person in the know said.

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The merger is still on the drawing board, the sources cautioned.

The US PE firm completed its ₹6,313-crore acquisition of Suven Pharma on Friday wherein it has acquired 50.1% stake in the company from the past promoters and will make an open offer for a further 26% stake. It also owns a majority stake in Cohance Life Sciences, an active pharmaceutical ingredient (API) manufacturer that was put together by combining three companies — RA Chem Pharma, Avra Labs and ZCL Chemicals — all of which were acquired in the past three years and are unlisted.

«They expect good investor acceptance of Suven Pharma's open offer. That could make them a very significant shareholder of the company,» one of the people said.

Details about the quantum of stake Advent could sell in the Suven Pharma-Cohance combined entity and the value of that stake are still being determined, as per the sources.

«There is no outreach being made to financial